Diwali, the festival of lights, not only brings joy and celebration but also carries valuable lessons that extend beyond the traditional rituals. For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), Diwali can offer insights into managing finances and investments. Let’s explore five financial lessons that NRIs can learn from the festival of Diwali.
Also Read: Diwali Gift by NRI: Sending Money Online to your Loved Ones
5 Financial Lessons from Diwali for NRIs
Here are five major financial lessons from Diwali for NRIs:
Lesson 1: Portfolio Diversification is Key, Just Like a Colorful Rangoli
- Much like the vibrant and diverse rangoli patterns adorning doorsteps during Diwali, NRIs should embrace diversification in their investment portfolios. Spread your investments across different asset classes such as mutual funds, debt securities, fixed deposits, commercial real estate, micro-VC. This ensures that you aren’t overly reliant on a single source and helps mitigate risks.
Lesson 2: Plan for the Long Term Investment Goals, Like the Diwali Tradition
- Diwali celebrations span several days, emphasizing the importance of patience and endurance. Similarly, NRIs should adopt a long-term perspective when it comes to financial planning. Whether it’s saving for education, retirement, or major life events, a disciplined, long-term approach can lead to greater financial stability.
Also read: Best SIP to Invest in 2024 – Top 10 SIP Mutual Fund Plans for NRIs/OCIs
Lesson 3: Control Expenses, Avoid Financial Crackers
- Diwali is a time of extravagant celebrations, but financial prudence is crucial. NRIs should be mindful of their expenses, avoiding unnecessary financial “crackers” that can lead to debt or overspending. Create a budget, stick to it, and prioritize your expenditures wisely, ensuring a balance between enjoyment and financial responsibility.
Lesson 4: Invest in Financial Knowledge, Like the Light of Diyas
- Diyas (traditional oil lamps) symbolize the victory of light over darkness. Similarly, NRIs should invest in financial education to illuminate their path to prosperity. Stay informed about market trends, understand investment options, and seek professional advice when needed. Knowledge is the true light that guides sound financial decisions. You can connect with our wealth team to understand about NRI investments in detail from here.
Lesson 5: Build a Financial Safety Net, Like the Protective Diwali Lamps
- Diwali lamps not only add to the festive ambiance but also serve as a symbol of protection. NRIs should prioritize building a financial safety net through emergency funds and insurance. Unforeseen events can occur, and having a financial cushion ensures you’re prepared to handle unexpected challenges without jeopardizing your long-term goals.
Also read: 5 Investing Lessons to Learn This Dussehra for NRIs
Wrapping Up
Diwali offers NRIs more than just a cultural celebration; it presents valuable financial lessons that can shape a secure and prosperous future. By embracing diversification, adopting a long-term perspective, controlling expenses, investing in knowledge, and building a financial safety net, NRIs can illuminate their financial path and achieve success in their endeavors. This Diwali, let the lights not only brighten your home but also guide you towards financial well-being.
Start your India Investing Journey as an NRI in with SBNRI
NRIs can now download the SBNRI App and choose to invest in different investment options in India with ease. You can also get detailed investment advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
FAQs
Can NRI invest in the Indian stock market?
- Yes. NRIs can invest in the Indian Stock Market by buying stocks listed on the National Stock Exchange of India Ltd. (NSE). To be eligible to invest in stocks, NRIs need to have a PIS Account under the Portfolio Investment Scheme* (PIS) that will allow them to trade stocks. *(Portfolio Investment Scheme (PIS): Through this scheme of the Reserve Bank of India, NRIs can purchase and sell shares and debentures of Indian companies on a recognized stock exchange)
How can NRI buy mutual funds in India?
- NRI investors can purchase or sell mutual funds in India once they complete their Mutual Fund KYC and have an operating NRO/NRE Bank account.
Can NRIs invest in PPF?
- Yes, NRIs can have a Public Provident Fund (PPF) and invest in it. However, an NRI can open a PPF account when he/she is a resident Indian.
Are there any tax-free investments for NRIs in India?
- Yes, there are a few tax-free investment options for NRIs from Canada available in India like NRE FD Account, FCNR FD Account, ELSS Funds, and Life Insurance.
Are mutual funds a good long-term investment for NRIs?
- Yes, mutual funds are a great long-term investment vehicle to generate returns and build wealth for NRIs. Investing in mutual funds for NRIs helps to utilize their savings and build wealth for the future. It also helps them to beat inflation and fulfill their investment goals.
